Oil cuts may be extended to ’22
Oil and gas industry should unite in driving post-Covid reCovery
abu dhabi — The Opec+ production cut agreement reached this April to support falling prices and low demand could be adjusted in the future, a top oil minister said.
In the opening session of the Abu Dhabi International Petroleum Exhibition Conference (Adipec), Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman Al Saud said that the production cuts could be “tweaked” in the future and extended to 2022.
“The agreement goes all the way beyond 2021 to the end of April with the caveat that we could also decide to extend it for the rest of 2022,” Prince Abdulaziz said in the virtual session on Monday.
When asked if the existing cuts of 7.7 million barrels per day will be maintained or eased to 5.7 million bpd by January 2021, Prince Abdulaziz said the decision will be taken in consultation with the other oil producers. “In the past, we did tweak. I believe with consultation with our friends, some of them are present here and some of them are not, but I know how heartily they are committed to the principle of tweaking. I would go and argue it could be a tweak even beyond what the so-called analysts are talking about.”
The months ahead will be challenging and oil demand may fluctuate but the long-term fundamentals of the industry remain intact
Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Group CEO of Adnoc
We did tweak and I believe with consultation with our friends, some of them are present here and some of them are not, but I know how heartily they are committed to the principle of tweaking
Prince Abdulaziz bin Salman Al Saud, Saudi Energy Minister